Balcas SHV Energy AMMBU nd February 2017

Transcription

1 22 nd February 2017

2 Balcas Invergordon Site

3 Environmental credentials the fuel Our wood pellets produced using 100% renewable energy All wood FSC certified Mixture of short and long term contracts for wood fibre supply All Balcas wood pellets manufactured locally in compliance with EnplusA1 requirements All wood used for pellet production has no other commercial use Second Balcas production facility in Scotland for additional security of supply

4 Our Fuel consistently above highest standard ENPlus A1 Requirement Pellet Characteristics Balcas Long Term Average Characteristic Impact >97.5 % Mechanical Durability (%) 99.3 % <risk of damage during transportation >4.58 kwh/kg 16.5 MJ/Kg Net Calorific Value 4.8 kwh/kg MJ/Kg >Efficiency < running cost <10 % Moisture Content (%) 7 % >Efficiency <running cost >600 Kg/m 3 Bulk Density (Kg/m 3 ) 651 Kg/m 3 <Storage Improved combustion <0.7 % Ash Content (%) 0.3 % >Reliability < running cost >1200 o C Ash Softening Temperature ( o C) 1441 o C >Reliability < running cost <1 % Fines (%) 0.2 % >Reliability <running cost

5 brites Market summary Largest indigenous production Largest single plant at Invergordon We produce & sell 180K tonnes per year Total market size over 600K tonnes. Ambition to continue to grow. Demand now exceeds our own production capability.

6 Balcas the Business Established 1960 s - 90m turn over Leading timber products supplier Pioneered biomass renewable energy in UK & Ireland Largest manufacturer of wood pellets in UK & Ireland since 2004 CHP & Pellet plants in Enniskillen & Invergordon >6,000 Customers supplied direct We buy > 1,000,000 tonnes of wood fibre per year.

7 Balcas the Team Established experienced team Designed, built and operate 2 x large biomass CHP plants total 11.3 MWe Experience of obtaining planning and RHI applications in short time frames Successfully obtained first zero carbon steam RHI application. 4MW steam installation now up and running for over 2 years. Others under construction.

8 brites Logistics Nationwide coverage Rural off grid customer s 8 depots 3 x Island of Ireland 5 x GB 35 vehicles 45,000 deliveries Online ordering

9 Transport

10 Brites market sectors Kg Bags

11 brites market sectors 2017 Residential

12 brites market sectors 2017 Distributors

13 brites market sectors 2017 Commercial

14 Commercial Delivery in UK

15 brites market sectors 2017 Industrial Heat

16 brites Market summary Strong growth in direct sales all production now consumed within UK & Ireland Non domestic Renewable Heat Incentive 20 year payments for non domestic customers Now over 1GW of installed capacity (enough to heat 100,000 homes) Total of 6,200 UK installations

17 Sell kwh Heat don t discuss the cost of Plant and Fuel We make it easy. We manage: Design / Integration Planning Permission Environmental Finance Build it Maintenance Fuel Supply Collect Incentives

18 Balmenach

19 Royal Brackla

20 RENEWABLE HEAT INCENTIVE??? Where is this going and what does it mean for us

21 RENEWABLE HEAT INCENTIVE CURRENT TARIFF PROPOSED TARIFF Tariff name Eligible technology Eligible sizes Tariffs Tariff name Eligible technology Eligible sizes Tariffs Small commercial biomass Less than 200 kwth Tier 1 Less than 200 kwth Tier Small commercial biomass Less than 200 kwth Tier 1 Less than 200 kwth Tier Medium commercial biomass Solid biomass including solid biomass contained in waste 200 kwth and above & less than 1MWth Tier kwth and above & less than 1MWth Tier Medium commercial biomass Solid biomass including solid biomass contained in waste 200 kwth and above & less than 1MWth Tier kwth and above & less than 1MWth Tier Large commercial biomass 1MWth and above 2.05 Large commercial biomass 1MWth and above 2.05 Solid biomass CHP systems (commissioned on or after 4 December 2013) Solid biomass CHP systems All capacities 4.22 Solid biomass CHP systems (commissioned on or after 4 December 2013) Solid biomass CHP systems All capacities 4.22

22 RHI SUMMARY The reforms will merge the existing tariff bands for small (less than 200kw), medium (between 200kw and 1MW) to create a single tariff band for all biomass plant. There is also a change from Tier 1 allowance being Boiler KW output x 1314 hours, to instead being boiler KW output x 35% load factor x the number of hours in a 12 month period (8760) There will also be the introduction of a cap to the annual payments for new domestic biomass systems to make sure owners of larger properties are not over compensated. There will be a slight increase to the tariff for new domestic biomass systems resetting the tariff at a previous level.

23 SO WHAT DOES THIS MEAN: So all boiler installations will be on the same tariff which will probably mean a reduction in small installs and installing larger KW systems For land owners, estates etc will have to look at larger KW boilers instead of multiples of smaller units. For us that means larger drops which suits our business model better. Tariff guarantees, providing investors with greater certainty regarding their tariffs earlier in the project cycle, will be introduced for larger biomass boilers above 1MW capacity.

24 Future RHI implementations Finance schemes to help Domestic participants the option to finance their installations through Assignment of rights. This lets the homeowner to assign their right to RHI payments to a third party that has paid for all, or part, of their heating system. The homeowner will still own their heating system. The government also plans further detailed work to access whether wood fuel drying should remain an eligible heat use, due to concerns about the value for money of RHI support in this area.

25 Many thanks for listening. Questions.